16.12. Suppose the XYZ Company, which has an annual demand of 12,000 units per year, order cost of $25, and annual holding cost per unit of $0.50, decides to op- erate with a planned shortage inventory policy with the backorder cost esti- mated as $5 per unit per year.

a. Determine the EOQ.

b. Determine the maximum number of backorders.

c. Determine the maximum inventory level.

d. Determine the cycle time in workdays (assume 250 workdays per year).

e. Determine the total inventory cost per year.